No company can become circular on its own: more SMEs will develop solutions together through new value chain collaborations

The Danish Business Authority has announced a national investment of DKK 272 million to support the next phase of circular economy initiatives targeting Danish SMEs. Of this, approximately DKK 230 million will fund the activities delivered as part of the programme.
This new round is a direct continuation of the work that, since 2023, has helped hundreds of companies reduce waste, increase recycling and improve resource efficiency through concrete value chain collaborations.

As Denmark’s water and environmental cluster, Clean will continue as a national partner in the initiative, helping even more companies take part in circular collaboration across industries.

From potential to real impact – now more SMEs will join

Denmark still lags behind several other nordics countries when it comes to resource efficiency and circular business development. Many SMEs want to move in a circular direction but lack knowledge, partners or the practical support needed to develop solutions that both reduce environmental impact and strengthen competitiveness.

With this new investment, more than 200 additional SMEs will have the opportunity to do exactly that.

“We see strong results when companies are given the opportunity to develop solutions together with partners across their value chain. This new round builds on work that is already delivering impact – and enables us to help even more SMEs turn circular ambitions into concrete business value.”
– Kim Fredenslund, CEO, Clean

Through the initiative, SMEs will gain access to:

• value chain collaborations

• advisory support

• opportunities to test and scale new circular solutions

• funding for concrete investments in materials and technologies

Companies are proving that circular development creates value

Several SMEs have already shown how much progress can be achieved when companies collaborate across industries:

Dots.Recycling
Developed a system for collecting, sorting and reusing tennis and padel balls — now sold commercially on Amazon and in major retail chains.
Read the story › “Dots.Recycling will give millions of tennis and padel balls a new life”

Grounded Cups
Created compostable coffee cups made from spent coffee grounds that naturally decompose within a few months, and is now scaling production to millions of units annually.
Read the story › “Grounded Cups advances circular production through Closing Loops”

These are just two examples among more than 200 companies that have already demonstrated the feasibility of developing and implementing circular business models in practice.

Documented results from the first round

A mid-term evaluation of the initiative shows strong progress:

• 6 out of 10 companies report that their business has already become more circular

• 90% of the programme’s output targets have already been achieved

The findings confirm that SMEs can both drive and facilitate the circular transition when they receive proper support and access to strong value chain partnerships.

Value chain collaboration is key

Circular transformation does not happen in silos. It happens when companies come together across industries, technologies and value chains to address shared challenges and opportunities.

The national initiative is one coordinated effort, organised into three sector areas:

Ready for the next step

The new round is scheduled to begin in early 2026, when SMEs across Denmark will be able to apply for participation. Clean invites interested companies to reach out if they want to be part of the next phase, which focuses on:

• circular value chain collaborations

• testing new materials and technologies

• developing circular products

• reducing waste and CO₂

• scaling circular solutions

“Danish SMEs have shown that they both can and want to develop solutions that make a real difference — for the climate and for their business. This new initiative allows us to invite even more companies to join.”
– Sean Coogan, Project Manager, Clean

Interested in joining?
Please reach out to Project Manager Sean Coogan to learn more about the opportunities.

construction (We Build Denmark)

• textiles & lifestyle (Lifestyle & Design Cluster)

• food & bio-based industries (Food & Bio Cluster Denmark)

Clean — together with MADE (Denmark’s manufacturing cluster) and the regional business hubs Erhvervshus Sjælland and Erhvervshus Nordjylland — contributes across all three areas. This enables Clean to leverage its water and environmental technology expertise wherever companies work with materials, waste, and circular innovation.